At some point almost all of us have sought out financial advice in some form or another. We have likely sought out guidance from a family member, friend, or a financial professional. Sometimes we are just looking for someone to bounce an idea off of, or maybe seeking someone who has more expertise than we do with more complicated financial tools. Just like decision making in non-financial situations, two heads are almost always better than one.

But some seniors also reach a point when the scope of assistance they might require may be different. There comes a time when they need not only advice to become better informed, but also because their judgment in reference to financial matters may not be all that it used to be. If they do not have the advantage of assistance once they need it there is a risk that they may become the victim of financial exploitation, or just that something may be overlooked.

The AARP recently completed a study in which they surveyed the practices that financial advisors have in place to determine it may no longer be wise for a person to continue making their own financial decision even if the firm is providing investment recommendations. Some financial advisors said if they began to have concerns about a person's capacity to make their own decision they would stop providing advice, others said they would first seek out clarification of the situation before executing any transactions on behalf of the client.

One option that can help many seniors facing this situation is a durable power of attorney. A Durable power of attorney gives someone else the authority to make certain decisions on your behalf. There are a variety of types of powers of attorney for different purposes. An experienced estate planning attorney can help you find the one that best suits your needs.

Source: AARP, "Do You Need Help Making Financial Decisions?" Jane Bryant Quinn, Jan. 11, 2012